Governor’s open declaration for NDC influenced his exit

The Minister for Monitoring and Evaluation, Dr. Anthony Akoto Osei has told Citi Business News the Bank of Ghana Governor’s decision to resign could be largely attributed to the difference in political ideologies between him and the governing New Patriotic Party (NPP).

According to him, Dr. Issahaku’s open support for the past NDC government could have influenced his decision.

“I’m not surprised and I am sure he has thought through it…when you are a Governor and you have once identified openly with a particular party in terms of being a candidate, it is difficult to convince others that you can work along with a new government with a different ideology so I’m sure he must have thought through it and he decided that was best,” Dr. Akoto told Citi Business News.

The Governor of the Bank of Ghana, Dr. Abdul Nashiru Issahaku on Wednesday (March 29, 2017) announced his resignation which will be effective on Saturday, April 1st, 2017.

His resignation comes almost a year of assuming office in April last year when he replaced Dr. Henry Wampah.

But Dr. Akoto Osei explains the move was to be expected due to the differences in economic policies.

“You have a contract and you want to resign; if you want to remain professional and technical then you don’t declare your stand openly because after all when you vote nobody knows where you are voting to.”

Bankers laud Governor’s legacy

Meanwhile players in the banking industry have lauded key decisions by Dr. Issahaku’s administration though they describe the term as a relatively shorter one for any critical assessment.

Banking Consultant, Nana Otuo Acheampong tells Citi Business News the reduction of the policy rate by 2 percent for the first time in over a decade now plus declining inflation will be key in Dr. Issahaku’s legacy.

“I can come up with the issue of interest rate; leaving on a very nice note when for the first time in ten years, he has been able to reduce the policy rate by 2% which is very huge so on that note it’s a very positive exit. Secondly, during his tenure inflation has been going down so it’s something that we have to credit him with.”

Though he commended the Governor for his initiatives to avert another debacle in the microfinance space, Nana Otuo Acheampong believes much could have been achieved had he stayed on a bit longer.

“During his tenure we have had some challenges in the banking industry with the DKM saga but then positively he has also taken action to prevent any further collapses so we have to be on credit and I’m sure he must have had a number of positive policies under his sleeve that he didn’t have the luxury of time to be able to push those agendas.”

New Governor must sustain economic growth

Citi Business News understands that a former Head of Research at the Bank of Ghana, Dr. Ernest Addison is tipped to succeed Dr. Issahaku as the new Governor.

Commenting on the expectations of the new governor, Economist, Dr. Lord Mensah said he must strengthen all economic indicators to sustain the economy.

“The indicators are good on the ground so for anybody who takes over, I expect him to maintain them as such. Also, all the indicators such as inflation and interest rates are showing a downwards trend and then also interest rate has started coming down,” he said.

“In addition, a governor that comes in should be able to maintain our foreign exchange and of course we expect that as a governor that is your mandate and through the Central Bank, there are actions,” Dr. Mensah added.

For his part, Dr. Anthony Akoto Osei explained that he is confident Dr. Addison will develop favourable monetary decisions to propel economic growth.

“Dr. Addiso will have to come and examine the current monetary policy situation and having been a director of research, I’m sure he can tell what new directions they might be taking but he is capable of doing that.”